CreativeOne DOL Fiduciary Rule Update

6/28/2018

On June 21, 2018, the 5th Circuit Court of Appeals ruling that the Department of Labor (DOL) had exceeded its authority in issuing its fiduciary rule was officially vacated. This means that the Fiduciary Rule has been revoked in its entirety and is no longer in effect.

What does this mean to you?

  • You as a producer are no longer a fiduciary when recommending annuity products to customers.
  • Related exemptions including PTE 84-24 and the Best Interest Contract Exemption (BICE) are no longer applicable.

We recommend the following.

  • If you are securities licensed, we recommend you review with your Broker Dealer any changes to their procedural steps following the revocation of the DOL Fiduciary Rule.
  • Although the DOL Fiduciary Rule has been vacated, the transition rules were in place for the period June 9, 2017 through June 21, 2018. If you were utilizing PTE 84-24 during this period, it is important that you retain all required documentation in your client files for the specified minimum period of 6 years.

CreativeOne supports a continued best practices approach to documentation and record keeping by financial professionals. Although the DOL Fiduciary Rule is no longer in effect, other regulatory bodies are working on regulations requiring proper documentation and disclosures practices in the future.

Refer back to the CreativeOne Regulatory Resource Center at creativeone.com to stay up to date on the latest regulatory and legislative developments.  Or get in contact with your CreativeOne team at 800.992.2642

 

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